The Housing Stability and Tenant Protection Act of 2019 (“HSTPA”) significantly overhauled the law on security deposits.  Landlords, beware!  There could be a heavy price to pay if you do not timely return the security deposit to your former tenant.  

The walk-through inspection:

As you know, prior to vacating your apartment, you should always schedule a walk-through investigation so that nothing comes to you as a surprise after you move out.  

Under the HSTPA, a landlord must conduct a walk-through inspection of an apartment no more than 2 weeks and no less than 1 week before the surrender, and must give 48 hours’ written notice of the inspection.  Tenants are allowed to be present for the inspection.  You should always be present, and if you cannot be, someone should be there for you.  

When the walk-through inspection is finished, the landlord must give an itemized statement specifying repairs and cleaning fees if the landlord intends to deduct that amount from the deposit.  The itemized statement must clearly state what repairs are necessary due to the tenant’s behavior.  Tenants then have an opportunity to fix those conditions before they move out.  

Landlords then have 14 days from the surrender and moveout to return the deposit and an itemized statement if they intend to keep any money for damage beyond reasonable wear and tear, nonpayment of past rent, nonpayment of utilities, or moving/storage of tenant’s left-behind personal belongings (note: please don’t leave anything behind, it only complicates things).  Landlords are prohibited from keeping money to pay attorney’s fees, late fees, or additional rent.

If a landlord fails to return the deposit within 14 days, then s/he forfeits the right to keep any of that money.  A tenant will probably have to sue the landlord in small claims or civil court to get the money back.  In that case, the landlord has the burden to justify the retention of the deposit money.  If the judge finds that the retention was unjustified, and that it was “willful”, the money amount awarded can be double the amount of the deposit.  

Hopefully you know by now what to expect and how to proceed when you move out.  If you feel like your landlord has not followed the law, do not hesitate to give us a call to discuss.  212-364-5593 or [email protected]. Visit us at www.outerbridgelaw.com.